The French bank reported solid growth across its investment bank but the rise in revenues was far lower than at Wall Street rivals after a bumper period of dealmaking and soaring markets.
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The euro zone’s biggest lender by assets saw its shares hit hard last week when it struggled to reassure investors that it faces limited exposure to Sudan-related litigation, after a U.S. jury found it helped Sudan’s government commit genocide by providing banking services that violated American sanctions.
BNP is appealing the U.S. jury’s ruling, and gave no update on Tuesday on the case.
The bank posted a net profit of 3.04 billion euros ($3.55 billion) for the July-to-September period, below the company-compiled 3.09 billion-euro average of 16 analyst estimates.
Revenues climbed 5.3% over the period to 12.6 billion euros, missing the 12.8 billion-euro average estimate.
The bank said the cost of integrating AXA’s fund arm, which BNP bought this year for 5.1 billion euros, is estimated at 690 million euros. The third quarter is the first in which AXA’s impact has been included in BNP’s results.
Higher regulatory capital requirements are also weighing on returns and delaying the deal’s full financial benefits.
The amount of cash BNP provisioned to cover bad loans in the third-quarter increased 24% year-on-year to 905 million euros, matching expectations but driven by the
BNP Paribas misses forecasts as AXA costs and bad loans weigh
